Which of the Following Is an Example of an Automatic

question 72

Multiple Choice

Which of the following is an example of an automatic stabilizer?

• A)Fed discount rate.
• B)Discretionary fiscal policy that must be determined by Congress and the president.
• C)Changes that are triggered by the economy and not by government decision makers.
• D)Supply-side policies that Congress designs to stimulate the economy.

---

Definitions:

Shortfall

A deficiency or gap where something falls short of expectations or required levels.

Workers

Individuals engaged in a physical or mental activity to achieve a purpose or result, often in exchange for payment.

Visible Minorities

Individuals from racial or ethnic groups that are not in the majority within a specific community or country, often marked by visible differences.

Labour Shortages

A situation in which there are insufficient qualified candidates available to fill the positions needed by employers in the labor market.